A climate stress-test of the financial system

By Stefano Battiston, Antoine Mandel, I. Monasterolo, Franziska Schütze, Gabriele Visentin. 2017

937 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/d1d1a55247dd3ca29884532bde58cfbbeb2fb3bf

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Citations in the corpus

Macroeconomic impact of stranded fossil fuel assets (2018, background): “Faced with SFFA of potentially massive proportions, the financial sector’s response to the low-carbon transition will largely determine whether the carbon bubble burst will prompt a 2008-like crisis 11,12,14,18 .”
Stranded Assets in the Transition to a Carbon-Free Economy (2020, background): “…linkages push prices up.10 Financial regulators are aware of these risks and Carney (2015) has made a strong case for climate stress testing the financial system (see Battiston et al. 2017; ESRB, 2016; Stolbova et al., 2018; Delis et al., 2019) and (activist) shareholders are slowly taking note.”
Climate Change, Financial Stability and Monetary Policy (2018, neutral): “So far, most studies have concentrated on the implications of transition risks (see e.g. Carbon Tracker Initiative, 2011; Johnson, 2012; Battiston et al., 2017; Stolbova et al., 2018; Trinks et al., 2018).”
An Efficiency Perspective on Carbon Emissions and Financial Performance (2020, background): “We expect carbon efficiency to affect systematic risk as shocks to the cost of carbon likely will be economy-wide and thereby difficult to diversify (Battiston et al., 2017; Dietz et al., 2018; TCFD, 2017).”
Three green financial policies to address climate risks (2021, background): “Following the first calls for attention (Dietz et al., 2016; Battiston et al., 2017), scholars and policy-makers have recently envisaged an active role of financial institutions and financial regulators in shaping both (i) climate risk-management (Campiglio et al.”
Complexity and the Economics of Climate Change: A Survey and a Look Forward (2017, neutral): “Focusing on this issue from a network perspective, Battiston et al. (2016) analyze the exposure of different classes of actors in the system using a well known macronetwork stress testing model (Battiston et al., 2012; Bardoscia et al., 2015).”
Modelling innovation and the macroeconomics of low-carbon transitions: theory, perspectives and practical use (2019, background): “This is a major shortcoming because such a transition will require large-scale investment in non-traditional sectors (Pollitt & Mercure, 2018) and put at risk existing investment and assets (Bank of England, 2015; Battiston et al., 2017; Carney, 2015; Mercure et al., 2018b).”
Let's Talk About the Weather: The Impact of Climate Change on Central Banks (2016, background): “As noted by Battiston et al (2016), most of the data about exposures through bonds and loans – to do a full stress test of the financial system – are unavailable, even to regulators.”
Fostering green investments and tackling climate-related financial risks: Which role for macroprudential policies? (2019, background): “In this respect, climate-related stress tests (CRSTs) are of vital importance to assess the extent to which financial institutions are exposed to carbonintensive assets (Kelly and Reynolds, 2016; Thoma and Chenet, 2016; Battiston et al., 2017; Monasterolo et al., 2017).”
Low‐carbon transition risks for finance (2020, background): “, 2015), climate-related stress testing at both micro and macro-prudential level (Battiston et al., 2017), and climate calibrated capital rules or collateral frameworks.”